Does YELP INC (NYSE:YELP) match Peter Lynch’s “Invest in What You Know” philosophy?

Lynch preferred companies with low P/E ratios relative to growth, manageable debt, and strong profitability. In this analysis, we see if YELP INC (NYSE:YELP) fits his winning formula.

Following Peter Lynch’s approach: Does YELP INC (NYSE:YELP) fit the bill?

• YELP exhibits a strong Return on Equity (ROE) of 17.86%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• YELP exhibits a favorable Debt-to-Equity ratio at 0.0. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• YELP has achieved 24.97 growth in EPS over the past 5 years, reflecting a sustained improvement in earnings performance.
• With a PEG ratio of 0.8, YELP is valued very reasonably for the growth it experiences.
• YELP maintains a healthy liquidity position with a Current Ratio of 3.34.

Fundamental Analysis Observations

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

YELP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 71 industry peers in the Interactive Media & Services industry. YELP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. YELP scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes YELP very considerable for value and quality investing!

For an up to date full fundamental analysis you can check the fundamental report of YELP

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Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.